Spearmint Rhino is the only strip club in Sheffield.
Photograph: PYMCA/UIG via Getty Images

Campaigners have been granted a judicial review against Sheffield’s strip club licensing policy in a move that could force councils across the country to reconsider whether they allow the venues in their cities.

The review, which could mean the operator Spearmint Rhino being forced out of the city, has been brought by a Sheffield resident referred to as Irene. Activists backing her case launched a CrowdJustice crowdfunding campaign on Thursday to cover the legal costs.

The high court decision to grant permission for the review could have significant implications for other councils considering strip club licences. It could force them to take into account the wider impact on women and gender equality, rather than just the wellbeing of those specifically affected.

While about 10 local authorities have approved policies not to allow any more strip clubs in their area, the campaigners hope this case could set a precedent.

In a statement accusing the council of ignoring important evidence, the Time’s Up For Strip Clubs Coalition says: “Sheffield have said they only have to consider the impact on women working in the club, women customers or ‘vulnerable people’ in the local area. In fact, the council has a legal duty to consider the negative impact on all women when deciding on a policy like this.”

Spearmint Rhino, which has been open for 16 years and is the only strip club in Sheffield, is an interested party in the judicial review. It had its licence renewed last year despite almost 100 objections.

In its submission to the council, the club manager said it was run to a very high standard and that dancers, staff and customers’ welfare and safety were his main concern.

The council has argued that if it refused to grant any licences to strip clubs they would simply operate unregulated, which would lead to more exploitation of women.

During a consultation exercise into the licensing of strip clubs, council officials said: “As the licensing authority, we feel we must endeavour to reduce the normalisation of the sexualisation and objectification of women, avoid exploitation of women and promote healthy sexual practices.”

But campaigners argue that when the council approved its new policy relating to the licensing of sex entertainment venues in November, it failed to consider the impact this would have on women and gender equality.

Irene says she has serious concerns about the impact of establishments like these on the objectification of women. When the council consulted on the issue, various women came forward to say they had experienced harassment by men visiting the club.

One woman, who had a studio opposite the club, said one of the reasons she gave it up was because of her negative experience of working so close to the lap-dancing club.

She said she was “harassed by men hanging around outside the club” and it made the area feel “unsafe, testosterone-filled and unpleasant to move around in”.

A spokeswoman for the Not Buying It Sheffield campaigning group said: “For several years now, we have been objecting to Spearmint Rhino in Sheffield but our concerns haven’t been taken on board … Legislation around strip clubs is supposed to give communities and the council power over the licensing of these premises but it doesn’t appear to be working.”

A spokeswoman for Sheffield city council said it would not comment on the legal action. Spearmint Rhino has been approached for comment.